Thingol prospered from this relationship. He hired them to build his mansion Menegroth, the ThousandCaves and fill his armoury. The Dwarves, on the other hand, gained many pearls from the coasts of Beleriand and exercised their skill (which at that time, they eagerly showed to the outsiders). Then the years passed on and Thingol was caught in the net of the Doom of Mandos. When Húrin brought him the Nauglamír, he decided to remake it and in it to set the Silmaril. Thus, he called for the help of the Dwarves. They labored hard and when they finished, they claimed the treasure as theirs and killed Thingol in the deepest cave of his own realm. But the necklace was regained and returned to Menegroth. Then the Dwarves attacked and caused the ruin of Doriath where they retook the necklace, before losing it forever by Beren at SarnAthrad. This was the root of the enmity of the Dwarves and the Elves, as seen by the above quote:

Of course there were some exceptions, like the cooperation of the Dwarves of Khazad-dûm with the Elves of Lothlórien and Eregion.

But in general, at the end of the ThirdAge, the relations of the two races were not at all worm. The SilvanElves of Mirkwood for example didn't treat them as friends, as described by the adventures of Bilbo and his company of 13 dwarves. And the siege of Erebor was at the last moment prevented from turning into another war among the two races.

How did the SilvanElves learn of the tragic events of the past is not difficult to imagine. The leaders of the SilvanElves were of Sindar origins, probably going east after the ruin of Doriath, or after the War of Wrath. With their wisdom and knowledge they also brought their enmity against the Dwarves. As for the following Ages after the War of the Ring, judging by the exceptional example of the friendship between Legolas and Gimli, there is hope that the past events would be forever forgotten.

And for the end, a more light-hearted account of the cold relationship of Dwarves and Elves, given in The Hobbit:

With any siblings of constrasting dispositions, rivalry is the norm, not the exception. The close personal friendship (and fellowship) between Glimi son of Gloin and Legolas son of Thranduil was probably much more rare than the occassional cultural and business exchange between dwarf and elf communities.